Asymmetric Association among Technological Spillover, Absorptive Capacity and Economic Development: A NARDL Approach
- Bushra Mushtaq
- Lecturer, Department of Economics, Lahore College for Women University, Lahore, Pakistan & PhD Scholar, Department of Economics, Government College University, Lahore
Submitted
November 22, 2023
Accepted
November 22, 2023
Accepted
November 22, 2023
Abstract
The spillover of externa research and development (R&D) capital stock and the level of domestic human capital, as a source of absorptive capacity, plays a vital role in stimulating economic growth and development. The objective of this study is to examine the asymmetric associations among human capital, R&D stock spillover, capital import intensity, and output growth in Pakistan over the period 1982 to 2020. For this purpose, we develop and estimate a nonlinearautoregressive
distributed lag (NARDL) model. The results of the bounds test confirm the presence of a long-run relationship, while the error correction model confirms the convergence from short-run to long run equilibrium among the variables. The impact of machinery and technological good imports is positive on per capita GDP in the long run. In contrast, the impact of external R&D capital stock is symmetric in the short but becomes negative in the long run. The relationship between human capital and per capita GDP appears to be asymmetric because of low spending in the education sector. Based on these findings, we suggest that Pakistan should enhance its share of imports of high-tech products and improve its absorptive capacity for the effective use of external R&D resources.
Keywords
Asymmetric association
technology spillover
economic development
This work is licensed under LJB.
- Citation
Mushtaq, B., Afzal, M., & Afzal, M. (2023). Asymmetric Association among
Technological Spillover, Absorptive Capacity and Economic Development: A NARDL
Approach. The Lahore Journal of Business, 11(1), 57-80.
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